Tax Lien purchasing how to

4 Replies

My friend and I are looking into purchasing tax liens and tax deeds. I have been looking up information abd have a general idea of what to do but we are looking for more information. The more the better. Our intent for now is the intrest that is paid back through the redemption period however if we gain properties throughout the way we will rent those out for extra income and also sell properties as well. Does anyone have experience with tax liens and would you care to share your info?

@Jeremy Thompson I live in Illinois but I invest in tax liens in Northern Arizona. I have a blog here on Biggerpockets where I talk about some of the process of AZ tax lien investing.

A few posts you can read to start you off are:

First Time Tax Lien Investor - your First Step

Basics for Online Tax Lien Auction process

Worried about EPA issues? They have a website...

The highest rate liens are properties that are...

Some typical Tax Lien results of mine...

Tax Certificate – To Foreclose or not to Foreclose? A Case Study

There are several other posts but these should get you started.

awesome thank you Jerry K. I will look at this information as soon as I can. 

@Jeremy Thompson Jerry has written a lot here on BP about investing in tax liens.  Tax sale laws vary tremendously from state to state.  If you want to invest in AZ then Jerry is  your guy here on BP.

A lot is written here on BP about tax liens. I set up a keyword alert for both "tax sale" and Tax lien" so I get notified when they are mentioned in a post. 

Three keys to tax sale investing

  • Know the laws in the area you are investing and how they affect your return
  • Know what you are bidding on
  • Know the true value of what you are bidding on. (not just the tax assessors opinion)

A good place to get info is the county website where you want to invest. It may be hard to find but there is usually something there.

@Jeremy Thompson To echo Ned's advice; Read through the AZ tax lien statutes. They define the rules. Things like how a tax certificate can be voided after you bought it, how long the owner has to redeem (pay back the taxes). The details on how to foreclose on a certificate. How long a certificate is valid before it expires worthless if you haven't foreclosed and the owner has not redeemed.

Like Ned, I too have set up some keyword alerts for tax liens/certificates etc. Not everybody posts about liens in just one forum. Ned's 3 keys are golden - follow them.

While Ned had nice words to say about me, I'll clarify to say that I know about tax certificate sales in northern Arizona counties and Pinal county. I have never invested in Maricopa county and that county has some slightly different rules than the other counties in AZ. So add reading the county tax certificate rules in addition to the state rules.

Drop me a message if you have some specific questions. And follow Ned's posts for overall lien strategies. There are many others here on BP that invest in liens/certificates/deeds from all over and can talk about the differences for their areas of expertise.

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